Nissan is planning to cut 12,500 jobs across the world in a bid to cut costs, but hopes are rising that its Sunderland plant will escape the worst of the losses.
The job losses will equate to about 9% of Nissan鈥檚 workforce but unions and business groups are hopeful that the company will not cut any more roles at its Sunderland plant.
Nissan employs around 7,000 people in the North East and its presence in the region supports many more jobs working in the supply chain.
In a statement Nissan said: 鈥淣issan is implementing strategic reforms in order to build an operational base that will ensure consistent and sustainable profitability over the medium term.
鈥淭he company is moving quickly to optimize cost structures and manufacturing operations, while also enhancing brand value, steadily refreshing its lineup and achieving consistent growth globally, including in the U.S.
鈥淭o improve its overall utilization rate, Nissan will reduce its global production capacity by 10% by the end of fiscal year 2022. In line with production optimizations, the company will reduce headcount by roughly 12,500.
鈥淔urthermore, the company will reduce the size of its product lineup by at least 10% by the end of fiscal year 2022 in order to improve product competitiveness by focusing investment on global core models and strategic regional models. While some of these initiatives are already underway, the company expects that substantial improvements in its performance will take time.鈥
A spokesman from Nissan鈥檚 Sunderland plant was unable to comment further on the announcement.
But a spokesman for trade union Unite said: 鈥淲e don鈥檛 believe that today鈥檚 global announcement by Nissan will affect the Sunderland plant over and above the headcount reductions announced last year.
鈥淭he Sunderland plant is one of the most efficient car plants in the world and we are continuing dialogue with the company about the introduction of new models into the Sunderland Plant.鈥
Rumours about the increased cuts were reported yesterday, when sources told Japanese media about the plans.
Nissan confirmed the news in a first quarter trading update, in which it reported a 12.7% fall in revenues. Turnover came in at 2,372.4bn Yen (拢20.15bn), down from 2,716.6bn Yen (拢17.5bn) during the same period in 2018.
Operating profit plummeted by 98.5% during the period,from 109.1bn Yen (拢810m) to just 1.6bn Yen (拢12m).
Nissan鈥檚 Sunderland plant was dealt a blow earlier in the year when the company revealed the factory would no longer produce its infiniti model. Instead the car will be made in Japan in efforts to centralise its production.
A number of North East MPs raised the future of Nissan in the Commons yesterday.
Afterwards, Washington and Sunderland West MP Sharon Hodgson, whose constituency includes the plant, challenged new Prime Minister Boris Johnson to rule out a No Deal Brexit.
She said: 鈥淟ike many people I was hugely worried by Nissan鈥檚 announcement this morning. At this stage there is little indication that any job cuts will be made at the Sunderland plant, but I will be monitoring the situation extremely closely and maintaining contact with both Unite Officials, and Nissan.
鈥淚鈥檓 glad Boris committed to the continuation of an active, innovation-led industrial strategy and I look forward to seeing that in practice.
鈥淲hen it comes to Brexit, a No Deal exit from the European Union poses an existential threat to the continued success of the automotive industry in the 海角视频.
鈥淚t is frightening that we now have a Prime Minister who believes he knows more than the industry itself when it comes to the challenges that a No Deal would present. I will continue to challenge No Deal at every available opportunity, and hold this new Prime Minister to account.鈥
